Ethereum is once again drawing attention after a fresh upward move, but the broader structure shows the market is still at a critical turning point.
Recent comments from Michaël van de Poppe highlight that while the price has pushed higher, a clean breakout may not come easily. The coming sessions will decide whether this move develops into a sustained rally or fades into another rejection.
Ethereum’s daily chart shows a shift from a strong uptrend to a weaker structure. After peaking, the price formed lower highs as momentum faded, with sellers taking control.
The market then entered a downtrend and moved into consolidation, where former support turned resistance and a declining moving average capped upside.
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Key Resistance Zone Now Under Pressure
After this correction, ETH dropped significantly, and a lot of selling took place. This may have cleared the market for traders. Then the price touched a support zone in a higher time frame, and this is where buyers started showing interest in the market.
This is where the rounded bottom formation for Ethereum started, with a couple of small higher lows. This formation is usually an early accumulation signal, meaning that the selling side is weakening while the buying side is gradually coming in.
Source: X
Currently, the price is moving back towards its old support area, which is now resistance. This is currently the most significant price level in this particular scenario.
If the price is able to break above this area, then it could potentially lead to bullish conditions, allowing the price to move even higher. If, however, it is rejected, then it could lead to further downward movements.
The momentum indicators also suggest a cautious approach. The RSI is gradually rising and showing improvement in strength. The volume suggests that the heavy selling may be over, but more buying is required for confirmation.
Ethereum L2 Growth Signals Structural Strength
Apart from the price movements, the Ethereum ecosystem continues to expand. Leon Waidmann, the Head of Research at Lisk, noted that the total amount of value held in Ethereum Layer 2 is above $33 billion.
Source: X
Although this is less than the $60 billion seen in 2021, the current situation is more stable. The ecosystem has more types of assets, more use of stablecoins, and stronger economic activity.
This is an important change because it demonstrates that the Ethereum network is maturing and is less influenced by speculation.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: Ethereum Price Slides as Vitalik Buterin Dumps Another $3.67M in ETH
